Friday, September 7, 2018

DAEX is a clearing solution for centralized cryptocurrency trading exchanges. Its clearing service is based on distributed ledger technology. Clearing and settlement rules are preprogrammed into clearing smart contracts on the DAEX clearing chain. The clearing process is automatic without people’ s interference. The objectivity of clearing is guaranteed by the consensus mechanism on the clearing chain. Also, customers’ digital assets are registered and stored on the DAEX’ s clearing chain. No other institutions or individuals can access these assets without the owner’ s permission.

The Goal Of DAEX

The goal of DAEX is to provide a better infrastructure for the cryptocurrency trading industry by taking the reasonable parts of the mainstream securities trading industry and by taking advantages of new opportunities brought about by the distributed ledger technology. Specifically, trading and clearing will be separated into different entities. Current centralized exchanges will continue to provide trading service. But the clearing work will be handled over to a common clearing service which is based on the DAEX solution. But, different from current centralized clearing services, the DAEX clearing service is based on distributed ledger technology.

The distributed ledger technology guarantees that trades are correctly and safely cleared and settled. By using distributed ledger technology, trader’s assets are kept in their own accounts on the blockchain. No one else can access traders’ assets without their permissions. This effectively removes trader’s asset risks in current centralized exchanges. The DAEX solution will be an open sourced clearing service based on a public blockchain. Its code is open for public inspection and supervision.

Terminology

The clearing chain

Cryptocurrency clearing service based on distributed ledger technology. It uses Clearing as a Service (CaaS) method to provide clearing services for cryptocurrency exchanges.

DAEX Wallet

A cryptocurrency wallet that supports multiple signatures and multiple digital assets. It accesses exchanges to trade cryptocurrencies and the clearing chain to manage its assets.

Multiple-part private key

A private key that is broken into several parts. Some parts have to be used together to access assets in the wallet.

Clearing as a Service（CaaS）

A clearing service that is provided using a cloud mode. The clearing facility is deployed on a public cloud. Exchanges and clearing members obtain clearing related services through APIs or clients.

The Ecosystem

DAEX ecosystem is composed of a clearing service that is based on distributed ledger technology, centralized exchanges and user wallets. Traders use their wallets to perform trades on exchanges. After trades are matched at exchanges, exchanges send matched trades to the clearing service. The clearing service CaaS is performed by smart contracts on the distributed ledger technology. During the initial phase of DAEX, cryptocurrencies will be serviced. During future phases of DAEX, cryptocurrency derivatives will be serviced. That is, DAEX will provide clearing service for cryptocurrency derivatives traded on exchanges.

The DAEX ecosystem provides the following advantages to participants in the system:

Secure

Participating exchanges must meet the business and technology requirements of the ecosystem, thus the quality of trading service is maintained. User’s assets are all held on the blockchain. Assets cannot be moved without user’s admission. Multiple-part private key further protect user’s assets and also a safe recovery mechanism in case a user loses his private key. Smart contract and the blockchain technology guarantees the correctness of clearing and settlement.

Trust

Decoupling between trading and clearing is the best way to guarantee the safety of customer trading assets. The insurance fund contributed by participating exchanges provides another layer of safety. The DAEX ecosystem therefore provides a trustworthy environment for exchanges and traders.

Open

First of all, the DAEX ecosystem is open to and welcome new exchanges. Exchanges that participate in the DAEX ecosystem can use all products and services provided by DAEX, including wallets and clearing. Secondly, participating exchanges can expect to use more value added services DAEX is going to provide, including cryptocurrency derivatives trading.

The Usage of Token

The DAEX ecosystem uses token DAX to facility the cooperation among different parts in the system. The DAEX Foundation issues DAX to raise fund for the development of the DAEX solution. The fund raising plan and the usage of DAX is stated below

Token Allocation Plan

During the initial offering phase, accepted cryptocurrencies include BTC、ETH QTUM and NEO. We will issue corresponding ERC20 coins. Received cryptocurrencies will be managed by the DAEX Foundation, and supervised by exchanges collectively.

We will also make a comprehensive token repurchase program to avoid inflation and a phased lock in program on some assets issued during the initial offering phase. The goal of these programs is to maintain a reasonable amount of tokens in the market.

ROADMAP

CORE TEAM

ADVISORS

To find out more. You can connect more with the Daex Blockchain at the link below:

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